News
OneUnited Bank has announced a new initiative, Bank for the Future, which will refocus their services on online banking. As part of the tech-oriented strategy, the bank is launching remote deposit capture, a Visa business debit card, online chat and a conversion of its online platform. The plan also calls for shrinking the bank’s branch footprint by closing two Los Angeles branches and moving to a new Boston headquarters location. The plan is designed to respond to decreased branch traffic as customers increasingly rely on internet and mobile banking solutions. “Banking is experiencing a new frontier; we need to be where our customers are... In local communities and online!” said OneUnited Bank President & COO Teri Williams.
Elkins Park, Penn.-based NOAH Bank has sued Duluth, Ga.-based NOA Bank alleging trademark infringement, false designation of origin and description and unfair competition. NOAH Bank representatives said the suit stems from NOA Bank’s recent hiring of a former NOAH officer and the opening by NOA Bank of a loan production office in New York in March 2016. NOAH alleges NOA has intentionally engaged in a scheme to confuse customers and prospects of NOAH in an effort to steal business. In particular, NOAH claims NOA targeted the Korean-American community it serves by adopting infringing trademarks and using NOAH’s confidential and trade secret information, which it got from NOAH’s former executive vice president and senior lender.
City National Bank of New Jersey and online payments platform PayToo have announced a partnership to launch a mobile wallet designed for bank customers as well as unbanked consumers. The partnership will give users the security of FDIC insurance and the convenience of a mobile wallet. PayToo allows users to perform online banking, deposit paychecks, pay bills and transfer money person to person. The partnership also gives users access to the PayToo network of cardless ATMs and multi-service centers as well as City National Bank’s network of 55,000 surcharge free ATMs. “Innovation in financial services is [bringing] people better ways to manage their finances,” said Preston Pinkett, chairman and CEO of City National Bank. “[We] see our partnership with PayToo as the way banking will work in the future.”
NCIF’s annual CDFI banking industry report shows the performance of the CDFI banking sector is continuing to improve. As a group, CDFI banks surpass the average U.S. bank in several performance metrics, such as net interest margin — with CDFI banks at 3.93 percent compared to the median of all U.S. banks at 3.58 percent. CDFI banks’ assets, deposits and capital base also showed steady improvement. CDFI banks also performed strongly in NCIF’s social performance metrics, Development Deposit Intensity (DDI), which measures the concentration of a bank’s branches in low- and moderate-income areas, and Development Lending Intensity (DLI), which measures banks’ home lending concentrations in distressed areas. The median CDFI bank has a DDI score of 83 percent, compared to 40 percent for the median U.S. bank. The median CDFI bank has a DLI score of 56 percent, compared to 27 percent for the median U.S. bank.
Low income families in Mississippi will receive much-needed home repairs thanks to a $496,000 Affordable Housing Program (AHP) grant provided by BankPlus and the Federal Home Loan Bank of Dallas. Edward Matthews is one of 60 Holmes County, Miss. residents whose homes benefited from the AHP grant. Matthews tarred his leaky roof for eight years. “When it would rain, I'd go to the hardware store and get some tar, then in the attic, I had to guess where the leaks were in the roof. Sometimes I'd guess right," Mr. Matthews said. The situation went from bad to worse when Matthews broke his back while repairing the roof during a storm several years ago. But now, thanks to the AHP grant, the home has received an all new roof.
In a piece for the Ford Foundation’s Equals Change Blog, Sunrise Banks CEO David Reiling writes that before banks can displace predatory lenders, they will need to consider the perspective of unbanked customers: “Why do consumers go to high-interest payday lenders to get small-dollar loans— and in the process rack up hundreds or thousands of dollars in debt—rather than to banks or credit unions? The answer is that most banks and credit unions simply don't offer small dollar loans... And while traditional checking and savings products are good and well tested, they are simply not ideal for people in every financial situation. We also know that customers consider accessibility, convenience and ease of use to be much more important than price—that’s why payday loans are so popular.”
OneUnited Bank and HBCU Pride Nation, a marketing company focused on historically black colleges and universities, have announced a partnership aimed at using social and digital media to increase financial literacy and deposits into Black-owned banks. The partnership is focused on spreading awareness of Black-owned banks on college campuses and encouraging students to reinvest their deposits into Black owned financial institutions. The partners intend to reach students through social media channels including Facebook, Twitter and Instagram. The goal is to reach and activate new members within the Black community, particularly among student communities at historically black colleges and universities.
The Consumer Financial Protection Bureau has issued an advisory and a separate report for banks and credit unions on best practices to prevent and respond to elder abuse. Estimates of annual losses range from $2.9 billion to $36.48 billion. The bureau is encouraging financial institutions to use fraud detection technology and to train employees to detect and respond to suspicious activity. It suggests using "age-friendly" account features to curb the illegal or improper use of a senior's funds. Among the recommendations are opt-in limits on cash withdrawals, alerts for specific account activity and view-only access for authorized third parties.
Beneficial State Bank and Foundation have officially opened nominations for the 2016 Oakland Indie Awards, which honor Oakland’s businesses and independent artists. The awards are focused on building prosperity in the local economy by celebrating the social, economic and environmental impacts of supporting local commerce. “As we face rapid change in Oakland, we know that the Oakland Indie Awards is an ever-important mainstay in our community that serves to lift up the independent businesses and artists who give back so much to our city,” said Beneficial State’s Community Engagement Officer, Emma Guttman-Slater.
Clifton Forge’s historic Masonic Theatre is entering a new chapter of its long history thanks to financing from Virginia Community Capital. Until its temporary closure in 1987, the Masonic Theatre was the oldest operating theater in Virginia. Designed in turn of the century beaux-arts style, the theater once played host to acts including Gene Autrey, Burl Ives, and the Count Basie Orchestra. Now, in time for its 111th year, the three-story theatre will be refurbished into a new performing arts, entertainment, education and community facility. Virginia Community Capital has provided significant financing with a historic tax credit bridge loan, in addition to support from community partners and contributions from local residents.